Dr.Thomas E. Martin III, PhD

Wyndham Worldwide, Corp. Q3 2007 Earnings Call Transcript

Wyndham BOD
Seven Sylvan Way
Parsippany, NJ 07054

Dear Board of Directors,

I am concerned about the Wyndham declining stock price and the employee turnover in the Wyndham Worldwide Vacation ownership marketing and sales departments. Over the last year, the average length of employment has been four months. Since an employee's first two months are spent learning the product and service, we only benefit from an average of two months of steady work. Clearly, we must find a solution to this problem. As time moves forward, Inflation and Inducement costs put a major strain on the Wyndham company general assets.

First of all, I suggest that when interviewing applicants, you be very specific about the type of commitment we expect from our employees. Let the applicants know that we only want to hire those who can make at least a one-year commitment to the company. Also, perhaps we should consider how stable an applicant's employment history has been. Secondly, I would consider a “3,5,7 yr vesting schedule” inside the Wyndham 401K, which in turn could provide golden handcuffs on key producers as well as reduce the future inducement cost, etc. Lastly, I would introduce 21st century comprehensive planning tools into the Wyndham vacation ownership employee training classes. Please feel free to contact me for more detail.

Sincerely,


Thomas E. Martin III, PhD
Martin Consulting
[e-mail]